Industry and consumer groups urge Congress to extend CARES Act relief to borrowers with federal student loans not owned by federal government

A coalition of groups that includes the Consumer Bankers Association, the National Council of Higher Education Resources, and consumer advocates, has sent a letter to House and Senate leadership urging Congress to extend relief to federal student loan borrowers whose loans are not covered by the CARES Act.

The borrowers in question are those with Perkins loans or Federal Family Education Loan Program (FFELP) loans that are not federally-owned and instead are owned by financial institutions, non-profit or state entities. The letter states that as many as 9 million borrowers fall into this category.

The Department of Education has issued guidance stating that the owners of such loans can voluntarily provide the same interest and payments relief afforded to other federal student loan borrowers by the CARES Act. The groups sending the letter seek legislative language in the next emergency bill passed by Congress that would mandate comparable relief for borrowers whose federal student loans are not covered by the CARES Act.

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